TikTok risks billions in fines as EU targets its 'rabbit hole' algorithm system

TikTok is facing potential billions in fines as the EU targets its algorithm system, which has been described as a 'rabbit hole' that can lead users down a path of endless content. The EU is taking aim at the platform's recommendation system, which uses AI to suggest videos to users based on their interests and viewing history.

This move by the EU matters for social commerce as it could impact the way TikTok and other social media platforms approach personalized advertising and content recommendations. If the EU is successful in its efforts, it could lead to changes in the way TikTok's algorithm operates, potentially affecting the platform's ability to drive sales and engagement for brands and creators.